Abu Dhabi Commercial Bank announced on Sunday that it has received a worldwide freeze order from a London court against six people from NMC Healthcare’s senior management. Among the executives are former owner BR Shetty, Emirati investors Khalifa al-Muhairi and Saeed al-Qebaisi and former CEO Prashanth Manghat. The Abu Dhabi based healthcare operator was placed into administration in the UK in April last year, after a scandal regarding $4bn of undisclosed debt came to light. The investigation on the company was triggered by a report by infamous short seller Muddy Waters.
This led to a massive fall from grace for NMC’s stock from a peak valuation on the London Stock Exchange of $10bn and its 5.95% sukuk due 2023 from above par in early 2020 to ~10 cents on the dollar currently. The court judgement cited a witness statement from NMC’s new CEO Michael Davis that said that a forensic team had found documentary evidence that the alleged fraud was carried out by the defendants, as per the FT. The judgement also revealed that NMC was maintaining two sets of inconsistent accounts – “a dishonest scheme” allegedly operated for the defendants’ mutual benefit, which was discovered after employees accidentally uploaded two versions of the same bank statement.
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